Joshua’s computation of taxable income for 2016 is as follows:

NOTES:
(a) Assume Joshua was resident in Canada on December 31, 2016.
(b) Assume that Joshua’s taxable income was prepared correctly.
(c) Joshua is divorced and lives with his 7-year-old son, Jamie.
(d) During the year Joshua incurred the following expenses:

(e) T4 information:

REQUIRED

Compute Joshua's federal and provincial taxes payable. Assume the provincial tax rates are as set out in ¶10,250. Also assume that the provincial tax credit base amounts are the same as the federal amounts; there are no over/under payments of EI and CPP

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Income from employment Net income from rental properties Public company dividend income Gross-up 38% Taxable capital gain RRSP contribution Child care expenses Net income for tax purposes Less: Net capital loss carryforward Taxable income $57,500 1,230 2,000 760 1,200 (4,000) (2,500) 56,190 (1,200) $54,990